FAC Explorer

Audit 12929

FY End
2023-06-30
Total Expended
$1.88M
Findings
2
Programs
4
Organization: Housing Authority of the City of Lexington, Nebraska (NE)
Year: 2023 Accepted: 2024-01-22
Auditor: Niewedde & Wiens Cpa's

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
9438 2023-002 Material Weakness - N
585880 2023-002 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $928,901 Yes 1
14.871 Section 8 Housing Choice Vouchers $613,748 - 0
14.182 Section 8 New Construction and Substantial Rehabilitation $249,108 - 0
14.195 Section 8 Housing Assistance Payments Program $89,760 - 0

Contacts

Name Title Type
Y8C9LCXDLNJ4 Lisa Linch Auditee
3083244633 Jeffrey J Wiens Auditor
No contacts on file

Notes to SEFA

Title: Debt balance Accounting Policies: 1. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Housing Authority of the City of Lexington, Nebraska and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: 3. The entity did not elect to use the 10% de minimus cost rate as covered in § 200.414 Indirect (F&A) costs. 2. The outstanding balance of the Section 202 Capital Advance Program mortgage at June 30, 2023 was $908,900.

Finding Details

Finding 2023-002
Finding 2023-002: Excess Residual Receipts Material Weakness/Noncompliance Section 202 Capital Advance – 14.157 Special Tests and Provisions Criteria: Annually upon expiration and/or renewal of the PRAC, residual receipts account balances in excess of $250 per unit must be remitted to HUD. Condition: The Authority is allowed to maintain up to $4,500 in its residual receipts. The Authority failed to determine excess receipts due to HUD when its PRAC renewed November 1, 2022. The excess due to HUD at June 30, 2023 was $5,292.34. Cause: The Authority did not have procedures to annually review the residual receipts account balance at the PRAC renewal date. Effect or Potential Effect: The Authority did not comply with the regulation to remit excess residual receipts to HUD. Recommendation: The Authority has had significant vacancies this past year which has reduced its ability to pay its vendors or capital improvements. Prior to remitting funds back to HUD, the Authority should contact its HUD representative to see if it would be possible to use the excess residual receipts instead of remitting them to HUD. If not, the Authority should begin the process to remit the funds back to HUD. The Authority should establish an annual procedure to review residual receipt balances on the PRAC renewal and remit funds as required. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.
Finding 2023-002
Finding 2023-002: Excess Residual Receipts Material Weakness/Noncompliance Section 202 Capital Advance – 14.157 Special Tests and Provisions Criteria: Annually upon expiration and/or renewal of the PRAC, residual receipts account balances in excess of $250 per unit must be remitted to HUD. Condition: The Authority is allowed to maintain up to $4,500 in its residual receipts. The Authority failed to determine excess receipts due to HUD when its PRAC renewed November 1, 2022. The excess due to HUD at June 30, 2023 was $5,292.34. Cause: The Authority did not have procedures to annually review the residual receipts account balance at the PRAC renewal date. Effect or Potential Effect: The Authority did not comply with the regulation to remit excess residual receipts to HUD. Recommendation: The Authority has had significant vacancies this past year which has reduced its ability to pay its vendors or capital improvements. Prior to remitting funds back to HUD, the Authority should contact its HUD representative to see if it would be possible to use the excess residual receipts instead of remitting them to HUD. If not, the Authority should begin the process to remit the funds back to HUD. The Authority should establish an annual procedure to review residual receipt balances on the PRAC renewal and remit funds as required. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.